Tag Archives: state biofuel tax incentives

North Carolina has had 8 plants that produce biodiesel. That is not as many as some other states in the Midwest, but it’s a good amount for the Southeast. What is odd about that is the fact that North Carolina is not a very good host to biodiesel, in spite of what the state government claims.

There have been many lobbies to try to get additional support for biofuels in North Carolina, yet very few of them have been enacted. There was a push several times for a tax holiday on biodiesel, didn’t happen. There was a push for mandated biodiesel blends for all diesel sold in the state, didn’t happen. There was a push for a supplemental tax credit for biodiesel sold in the state, nope, didn’t happen either.

What’s interesting is how many other states actually have done something. The following information was provided by the NC Department of Revenue, Motor Fuels Tax Division. It lists the number of states that do not charge tax for biodiesel. Oddly, NC has the highest tax on diesel fuel in the Southeast at $.30 per gallon (Georgia has the lowest at $.15). So, if NC had no tax on biodiesel it means that B99 (pure biodiesel) would be cheaper by $.30 per gallon, and blends such as B20 would be $.06 cheaper per gallon.

States with no tax on biodiesel: Idaho, Kentucky, Missouri, Montana, New Jersey, New Mexico, Oklahoma, Oregon, South Carolina, Tennessee, Vermont, Washington, Wisconsin, Wyoming.

That’s 14 states that seem to want to promote biodiesel by providing an incentive for the customer to by not taxing it. The rest apparently can’t seem to do without the tax revenue. Pity.

North Carolina has a state funded Biofuels Center called the Biofuels Center of North Carolina, and a goal, as published on their website that says “The goal ofNorth Carolina’s Strategic Plan for Biofuels Leadership is that by 2017, 10% of liquid fuels sold in North Carolina will come from biofuels locally grown and produced”. Considering that South Carolina, Tennessee, Kentucky, and Virginia all have better incentives for biofuels than NC, I don’t see that happening unless the NC Legislature starts taking this seriously and providing incentives for producers to make biofuels, and consumers to buy it. So far, that’s not even remotely happening in this state.